Commissioner of Income-tax (TDS) v. Hakmichand D. and Sons
[Citation -2017-LL-0911]
Citation | 2017-LL-0911 |
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Appellant Name | Commissioner of Income-tax (TDS) |
Respondent Name | Hakmichand D. and Sons |
Court | HIGH COURT OF GUJARAT AT AHMEDABAD |
Relevant Act | Income-tax |
Date of Order | 11/09/2017 |
Judgment | View Judgment |
Keyword Tags | deduction of tax at source • technical service fee • licence fee • oral order • professional service |
Bot Summary: | The issue in the nutshell pertains to the disallowance under section 201(1) read with section 194J of the Act on the payments made by the assessee by way of license fees to Indian Railway Catering and Tourism Corporation Limited 'IRCTC' Page 1 of 3 HC-NIC Page 1 of 3 Created On Tue Sep 12 09:57:44 IST 2017 O/TAXAP/663/2017 ORDER for short. The Revenue contends that the assessee had to deduct tax at source as provided under section 194J of the Act. Section 194J of the Act raises the requirement for deduction of tax on payment of professional or technical service fee and for obvious reasons therefore this provision would have no applicability in the present case. Section 194C of the Act pertains to requirement of deduction of tax at source on payments to contractors. Under sub-section of Section 194C, any person responsible for paying any sum to any resident for carrying out any work in pursuance of a contract between the contractor and the specified person is required at the time of credit of such sum in the account of the contractor or at the time of payment to deduct tax at specified rate. In the present case, the payment of licence fee was made by the contractee to the contractor and therefore section 194C of the Act would not apply. In plain terms, section 194C of the Act does not cover the present situation where the assessee was making payment of licence fee to the IRCTC for catering service. |